A chips processing line by Kuipers, capacity 500 kg per hour. Raw potato input, peeling. slicing, blanching, frying and flavouring.
Thanks for the contents:
Valeria Lucinschi (Marketing Manager, Kuipers Food Processing Machinery)
Growth opportunities in the indian food processing sector
Besides presenting one of the largest population on the planet, India is also rich in culture, religion and tastes. For the food processing sector, India is considered to be one of the most potent worldwide.
The availability of raw inputs combined with a high local and global demand provide food processing companies as well as the local farmers many growth opportunities.
Great selection of Indian snacks, endless
Revenue in the Snack Food segment amounted to US$ 5,254 m in 2019 and is expected to grow.
Due to its diversity, India also presents manufacturers with the unique possibility to test their limits by demanding the production of special new products, some very specific to regions.
The variety of Indian namkeen snacks or savoury snacks is endless.
Examples of these include bhujia, aloo tikkis or samosas. In addition, many nut and meat products can be also processed and enriched in taste with the great selection of Indian spices.
*The Snack Food segment includes salty and savoury foods e.g. potato chips, extruded or expanded products and nuts.
Business in India, relationship based
Business in India is not only a commercial battle but also a cultural one. Due to the huge revenue potential, the competition is tight and, for those already in the market, the fight to maintain market share is fierce.
Kuipers Food Processing Machinery had previously attempted to overcome this barrier, however, with very little results.
Convincing the Indian customer of the quality and advances their technology offers was a slow but rewarding process. Their Lead Process Engineer, an expert of Indian origin comments on the complexity of overcoming this challenge for Kuipers.
“For traditional Western companies it is hard to understand that business in India is relationship based” says Mr. Mander. Gaining mutual trust and having a good partner are probably the main success factors. This applies to any kind of business, not only within the B2B processing market.
The importance to find the right partner
A good strategy is essential when entering any new market. In addition, looking beyond the strategy is necessary. In the case of India besides finding the right partner, planning your budgets and becoming familiar with the bureaucratic and legal systems, you must look into “grey areas” such as the importance of religion and culture, the relationships you build with your stakeholders and price sensitivity of the companies. Price sensitivity applies even to the big corporations.
The importance of a good local support to enter in the market
Kuipers and Siddhivinayak Agri Processing Pvt. Ltd. began initial communications at the start of 2019.
Previous attempts to get to the Indian customer were unsuccessful although Kuipers had already an agent in the territory. While representatives from each companies met at an event, the instant interest was mutual. Kuipers were very thrilled to begin collaborating with a young, dynamic team like SV Agri.
Their capable and experienced team as well as the great knowledge of the local market have helped Kuipers to enter the Indian market in less than a year. In addition, the company succeeded a major contract with one of the biggest player within the snack market in India. Together the companies were capable to secure a strong reference and begin operation in one of the biggest markets worldwide. It is sure that the alliance between Kuipers and S.V. Agri will be of great value to both parties.
Info on Siddhivinayak Agri Processing Pvt. Ltd
The company’s main goal is to create value across the food supply chain and food processing sector by blending knowledge of agriculture, food processing and technology. Founded in 2008, it has come a long way by creating better livelihood for farmers, providing reliable supply base to food manufacturers and improving efficiency of production lines.